Research On The State Audit Strategy Which Is Prepared For The Reform Of State-owned Enterprises

Since the reform and opening up, China’s state-owned enterprises operating quality, management level has been significantly improved, the overall size, profit level of state assets has improved greatly. But the problem such as efficiency of state-owned enterprise, unfair competition still persists, the state-owned assets management system also somehow functions wildly, the loss of state assets is still outstanding. To enhance the vitality of the state-owned enterprises, improve the management of state assets, "Guidelines on Deeping the reform of state-owned enterprises" have been released to make the overall arrangement and detailed guidance for the reform of state-owned enterprise. The reform has put forward new demands for the audit supervision.Currently, research is mainly basing on the reform in the past, the research of over-all strategy which will be used by state audit to deal with the new reform of state-owned enterprise is in need. State audit is a core strength of state owned enterprise regulation, how could state audit adapt to the reform? That’s the problem that this paper try to study.This paper fully reviews existing foreign and domestic research results on the reform of state-owned enterprise and state audit, combing with the specific content of the reform and the status of the state audit supervision, give out the general strategy of state audit in the aspect of audit work ethic, range, methods, and focus. In addition, the general strategy has been used in the case study of COFCO to form the specific strategy about COFCO, in the same time, the general strategy has been proven feasible through the case study.This study finds that:(1) State Audit and SOE reform are integral parts of governance, there is a mechanism of interaction between the two. (2) There are many shortcomings in the institutional arrangements of state audit in response to the SOEs reform. (3) State audit needs to change the concept of evaluation, clarify the coverage, using more types of business and adjust the focus. In response to the reform of COFCO, state audit can create classification and grading evaluation system and regular auditing system, using a variety of methods of supervision, carrying out combined performance audit and special audit tracking, while concern more about the implementation process of the COFCO reform policies.The innovation of this paper is that on the background of new reform of state-owned enterprise, study of the general strategy of state audit could systematically guide the state audit practice. And the specific strategy about COFCO could serve as a reference for state audit when the objects are similar to COFCO. Overall, there are positive effects for the state audit in advancing reform, serving governance and playing a better role of "immune system".